Coming off of AAPL's blow earnings last night, the market had a strong open. But, sellers came in shortly after the open, and the market sank into the red. It hung around the flatline for most of the day. In the late afternoon, the market experienced a quick drop only to see buyers come back in in the last hour to drive the market back up. Lots of volatile trading, not a lot of direction.
After the market, lots of earnings came in. EBAY reported disappointing earnings, sending its stock down 8.48%. FFIV delivered a solid report card, but, its shares still traded lower by 3.69%. NFLX delivered a great quarter and gave good guidance for the year. Its shares were only up +1.63%. SNDK reported a 99 cents per share profit vs. a loss of 92 cents last year. The average estimate was 59 cents per share. This was enough to shott SNDK shares up +6.76% in after-hours trading. SBUX earned $217 million in 2Q with a revenue of $2.53 billion, beating the estimates. SBUX shares rose +1.65%. QCOM reported quarterly results that were inline with the analysts estimates; its shares fell 8.28% this evening.
The Dow was up 7.86 points; SPX slid 1.23 points; Nasdaq added +4.3 points:
BTK (biotechs) fell 1.48%. SOXX (semiconductors) also saw weakness, even though earnings have been very good in this sector. Commodity sectors were flat. GLD (gold) and SLV (silver), however, made decent gains. XLF (financials) slipped 0.6%. FXI (Chinese ADRs) continued to fall.
SPX went as high as 1210.99 today; Nasdaq saw 2510.5. Both SPX and Nasdaq slipped below their respective key levels (SPX 1200 and Nasdaq 2500) at the low of the day, but, managed to close above. Still, with earnings reports coming in strongly, the market was not able to break higher. Instead, investors seem to be eager to lock in profits on strength, although we are still seeing some buyers on weakness as well. The market seems to be treading water, trading sideways around the above mentioned "key levels". The prevailing unwillingness to drive things higher on solid earnings can be signaling the fatigue in this rally. The problem here seems to be that in anticipation of a solid quarter, investors had already driven things up so much in the past 2 months. Now, they are ready to ring the register. Tomorrow after the market, we'll hear from MSFT and AMZN, which are expected to deliver solid results. So, for now, the market hangs on, waiting for blowout reports. We are going to see pops here-and-there, but, there's certainly nervousness at these heights.
Disclosure: no positions